Sunday, January 27, 2013

Non-Value Trades


Over at the mailbag, Mike asks a trading question that is almost as old as Rotisserie League Baseball itself:
I've been offered a trade that I don't know how to evaluate, even after having played roto for a long time. When should I want to trade for a very good player at what I think is a fair price?
In keeper leagues, every owner should have the same goal during the offseason: adding raw value to his team so he can put himself in the strongest position possible at his auction. In serious leagues, you're not going to be able to trade a $20 player with a $10 salary for a $15 player with a $12 salary during the offseason. What's more likely is that the $4 freeze you think is worth $4 is going to get traded to the owner who has a $5 freeze you think is worth $8. What's even more likely is that your differences of opinion are going to be incremental and you will fail to make a trade.

There are times where you might want to make a trade where you take a value hit. You don't want to take too big of a hit, but if you're losing a little value in trades like the following deals, you might be better off.

1) Categorical Need
During the regular season, this is an easy one to figure out...particularly midyear when it starts becoming clear where your team excels and where it is deficient. In the winter, it takes a combination of planning and forward thinking to decide whether or not a trade like this is right for you.

The "scarce" categories are the ones where you might do something like this. If it appears that your auction is only going to have three closers available, you might trade an undervalued keeper for a closer at a par price. You might also decide not to make the trade, see what happens in the auction, and either buy a closer or chuck the category overboard. How much you might overpay in the offseason depends a lot on how much you think you would have to overpay in the auction. If categorical scarcity historically pushes owners to pay $4-5 over inflation for a closer, overpaying by $1-2 might make sense.

Of course, you might also just want to dump the scarce category entirely. Speaking of which...

2) Category Dumping
You have a terrible freeze list and know that even with the best value auction you've ever had you're still probably going to finish sixth at best. You don't want to just wind up dumping in June but suspect that this is what's going to happen unless you're the luckiest guy in the history of Rotisserie. What do you do?

Depending on how your freezes are stacked, you might decide to dump one or two categories. If a $23 Jose Bautista is your only power hitter worth keeping and you have a decent core of base stealers, you might try to trade Bautista and opt for a no power strategy. If you have a market value closer but weak pitching and a lot of bats, you might flip that closer and go with a cheap-o pitching strategy. 

Making trades like this can be advantageous because it is typically less obvious to your opponents what exactly it is you are doing. Most owners don't expect you to trade a category away in its entirety, or trade a $23 Bautista for a $5 Alexi Casilla. The best thing about this tactic is it can lead to owners reaching out to you thinking that you're making a run of poor trades...as opposed to laying the foundation in March for a successful auction.

3) Trading for the Future
If category dumping isn't for you, you might want to try and catch lightning in a bottle before your auction and grab some futures. I'm not talking about blue chip studs like Wil Myers who their owners won't trade in a million years, but rather second tier farm players that might or might not be freezes at $10 and don't have the top-tier prospect pedigree. Think players like Josh Reddick and Kyle Seager entering last season. They probably weren't keeps at $10, but if you froze them at those prices you not only wound up with good freezes for 2013 but potential dump chips in 2012 as well.

Before you get all excited about trying this strategy and preparing for your Yoo Hoo shower this coming October, there are a couple of important points to keep in mind. First, while Reddick and Seager are terrific examples of non-blue chip prospects that worked out, there are also a lot of these types of players that don't make it. This is a risky strategy that you should only try if you're desperate. Second, in some leagues owners guard their potential dump chips so closely that you might not be able to trade for a borderline young player under any circumstances.

4) Inflation Hedges
If you did dump and dumped well, chances are that you have a dynamite freeze list. If you do have a problem, it's that even with all of your great freezes, you have about $180-190 to spend in an inflation-heavy auction. If you don't take any action to mitigate this, the joy of dumping into a perfect team will be shattered by the realities of draft inflation. Suddenly, that $15 Giancarlo Stanton and that $10 Bryce Harper don't look as good as they once did.

One way to combat this is by trading for a player or two at par prices. You don't want to trade the likes of Giancarlo or Bryce for these par players. Instead, think about the freezes you have that are cheap and $3-5 undervalued. Flipping a $6 David DeJesus for a $38 David Wright might seem counterintuitive, but Wright's inflation value in some leagues will be in the neighborhood of $38, and keeping Wright instead of DeJesus will take $32 out of the equation for you an Auction Day. With 30% inflation, that $32 is only buying you $24-25 worth of stats. Unless DeJesus is a $7 bargain, you might have a better deal on your hands than you thought.

All of these scenarios should be viewed as exceptions, not norms. If every trade you make siphons value away from your freezes, you are setting yourself up for an unsuccessful auction and a losing season. However, there are times where winning the value portion of a trade isn't necessary depending on your circumstances.

Wednesday, January 23, 2013

Roto Versus Head-to-Head

James from the Carolinas wants to know about the difference between Rotisserie and Head-to-Head formats:
Have played Roto for many years, so I'm a little nervous about trying a Head 2 Head type League. Will my Roto experience make the learning curve quicker? Where are the pitfalls?
I have never played in a H2H league before. But since I always try to help, I thought I'd take a look at the key differences between Roto and H2H. The point values I used for this analysis are from CBS' fantasy baseball rules. Different leagues use different point systems, so if your league uses different categories, these rules may not apply to you.

Offense
In Rotisserie you can get away with playing Stars and Scrubs. Due to the way points are accumulated in H2H, it wouldn't make nearly as much sense to carry one or two zeroes on your roster in favor of a superstar, unless you're talking about an utter stud like the 2012 versions of Miguel Cabrera, Ryan Braun, or Mike Trout. You want to make sure your line-up is as complete as possible each and every week.

While I might look at match-ups in Rotisserie, I generally wind up putting the same line-up in week in and week out. In H2H, it's common to have a nine-man line-up with a deeper reserve list. This puts more of an onus on you as an owner to mix-and-match with your line-ups. H2H owners have to be a little more attuned to lefty/righty match-ups, who is home and who is on the road, and other considerations that I wouldn't worry about quite so much in Roto. 

Categorically, there is much more of an emphasis on players that produce across the board. Batting average and steals are both emphasized less, while overall slugging and on-base percentages matter more. In mixed Roto, you want B.J. Upton over Hunter Pence because of Upton's dynamic HR/SB combination. In H2H, Pence beats out Upton because all of those other counting categories add up. Take overall producers in H2H, not category monsters that don't do well across the board.

Pitching
Innings matter. You still want them to be quality innings, but starting pitchers like Kris Medlen and Stephen Strasburg lose some of their value in H2H. It's easier in Roto to ride awesome ERA/WHIP guys to first place in two categories, but because of the cumulative nature of H2H you can't do this and expect to succeed. Trevor Cahill and Strasburg were comparable values in H2H, and you would have been better off with Bruce Chen in 2012 than Medlen.

Saves are deemphasized a lot. The best reliever in Roto last year was Fernando Rodney; he was the ninth best pitcher overall in mixed 5x5. In H2H, he was still the best reliever...but was only the 40th best pitcher. You would still rather have Rodney than Glen Perkins, but given the lack of comparative points, you might want to wait until the later rounds to get your relievers and not waste high picks on guys like Rodney.

If batting average is minimized for hitters, the same applies to WHIP and ERA for pitchers. In terms of the rankings, aces are aces - R.A. Dickey, Justin Verlander, Clayton Kershaw, and David Price still round out the top four - but the innings munchers like Barry Zito and Chen really get rewarded here. I still might want a top flight pitcher, but given how many points guys like Chen get just for showing up I'd be less inclined to try and build a top-flight staff and more inclined to shift my resources toward hitters and simply build a staff of consistent, durable workhorses that can give me 180-200 innings each.

Sunday, January 20, 2013

Bargains and Busts: 2012 N.L. Pitchers


After a couple of years of National League pitchers holding onto most of their value from season to season, the most expensive pitchers slipped last year. But only a little bit.

Top 10 Salaries, 2012 N.L. Pitchers
#
Player
$
Sal
+/-
CBS
LABR
TW
PK
2011
1
Clayton Kershaw
$31
31
1
34
26
32
34
$38
2
Roy Halladay
$10
30
-20
33
28
29
34
$34
3
Cliff Lee
$20
28
-8
31
26
27
32
$33
4
Zack Greinke
$12
26
-14
24
26
27
28
$18
5
Tim Lincecum
$2
26
-24
28
24
25
27
$23
6
Cole Hamels
$26
23
3
25
22
23
27
$28
7
Stephen Strasburg
$21
22
-1
23
22
22
26
$5
8
Matt Cain
$28
22
6
23
21
22
26
$24
9
Yovani Gallardo
$17
22
-5
21
23
22
25
$20
10
Craig Kimbrel
$29
22
7
23
21
21
21
$26
Average
$20
25
-6
27
24
25
28
$25

2012 was the weakest year for this crop of pitchers since 2009. Those pitchers earned $18 and cost $27. One reason that last year's pitchers weren't nearly as disappointing is that the market has stopped paying over $30 for more than one or two arms.

Except for Rotoman. His advice is to go bananas for the top arms. His $28 salary blows away the expert market (in particular the conservative LABR/Tout Wars), and in a four-way battle with the market he outbids them on every pitcher except for Kershaw (tie with CBS), Lincecum, and Strasburg (CBS outright).

Yet the only one of these pitchers Rotoman bought in Tout Wars was Strasburg. By his lights, this was a good price. But - if that was the case - wouldn't he have been better off buying Halladay at $30 or Lee at $28? Or why not buy Strasburg and Halladay or Lee?

Mike Gianella's Tout Wars Bid Limits 2012
Clayton Kershaw $32
Roy Halladay $31
Cliff Lee $29
Cole Hamels $26
Zack Greinke $24
Matt Cain $23
Madison Bumgarner $22
Craig Kimbrel $22
Tim Lincecum $22
Jon Papelbon $21
Stephen Strasburg $20

I'm always giving Rotoman grief for his prices and what he did wrong but that's easy to do when you're just sitting on the sidelines. These were the bid limits I walked into Tout Wars with last March for the 11 pitchers on which I put a $20 or higher bid limit.

When I started putting these bids together, LABR had already convened earlier in the month. And my initial reaction was: what the fuck? Halladay was the only pitcher LABR spent over $26 on? Kershaw for $26? Tout Wars has some of the same owners but also has a similar bidding culture as LABR. I had to push my pitching prices down.

But I couldn't push them so far down that they weren't relevant. So I did what I always do with my prices: express preferences. Was I worried about getting Kershaw and Halladay at a combined $60 and blowing my pitching budget? Yes...but I figured I'd adapt if that happened.

Scott Pianowski (Yahoo!) bailed me out by buying Kershaw. And Tout Wars as it turned out was slightly more aggressive on the perceived top pitchers. But I still wound up spending a combined $71 on Halladay ($29), Hamels ($23), and Papelbon ($19).

Getting back to Rotoman, his prices reflect what he believes (and what I generally believe) typical leagues spend on pitching. LABR and Tout Wars spend less. I don't know if he walked into the conference room at Sirius XM last March with bid limits, but if he didn't he probably still intuited that walking in with those bid limits above would have pushed him into a strategy similar to mine early in the auction. So in terms of adapting to the realities on the ground, Rotoman 1, Gianella 0.

I usually say that the experts are too penurious, the top pitchers are a good buy, etc., etc. But last year, I think the experts’ conservatism may have been dead on the nose.

Top 10 Earnings, 2012 N.L. Pitchers
#
Player
$
Sal
+/-
CBS
LABR
TW
PK
2011
1
R.A. Dickey
$33
4
29
3
4
5
5
$13
2
Clayton Kershaw
$31
31
1
34
26
32
34
$38
3
Craig Kimbrel
$29
22
7
23
21
21
21
$26
4
Matt Cain
$28
22
6
23
21
22
26
$24
5
Gio Gonzalez
$28
15
13
18
13
15
14
$21
6
Aroldis Chapman
$28
5
23
4
5
5
2
$5
7
Cole Hamels
$26
23
3
25
22
23
27
$28
8
Kris Medlen
$25
2
23
3
4
$1
9
Johnny Cueto
$25
12
13
12
11
12
13
$18
10
Kyle Lohse
$24
2
22
2
1
3
4
$16
Average
$28
14
14
14
13
14
15
$19

If you've been reading both the A.L. and N.L. pieces in this series, you'll notice that while in the A.L. there were six pitchers that cracked $30 in earnings, in the National League only Dickey and Kershaw cracked that mark. This is a source of confusion for non-only league players. Was Justin Verlander ($39) really six dollars better than Dickey last year?

Verlander 17 wins, 238 1/3 IP, 239 K, 2.64 ERA, 1.057 WHIP
Dickey 20 wins, 233 2/3 IP, 230 K, 2.73 ERA, 1.053 WHIP

Their numbers are pretty similar, except for the wins. What's happening here?

League context.

Average A.L. Auctioned Pitcher 2012: 6.2 wins, 3.4 saves, 85.5 K, 4.10 ERA, 1.297 WHIP
Average N.L. Auctioned Pitcher 2012: 6.8 wins, 4.7 saves, 98.3 K, 3.74 ERA. 1.248 WHIP

The average National League pitcher purchased at auction was much better than the average American League pitcher. These numbers are different from what the entirely of Major League Baseball actually did. All American League pitchers put up a 4.09 ERA and a 1.31 WHIP, while all National League pitchers put up a 3.95 ERA and a 1.31 WHIP. 

Why does this matter? Why not just use the overall league numbers and be done with it?

We're not buying all of the pitchers on Auction Day. We're buying the ones we think will be the best. So I'm not measuring all of the pitchers using the draft dollars allocated for them. The players that are auctioned are graded against each other.

In the A.L.'s 2012 context, R.A. Dickey earns $40. I can shake my head at the A.L. expert market for not spending over $30 on a starting pitcher when the league average pitcher isn't that good. I can't do that same in the N.L. Maybe Rotoman and I were overreaching last year.

The draft pool in the National League was richer. You weren't going to score big with profit and value in the N.L. like you were in the A.L. As a result, the spending in the N.L. was probably "correct".

And the bargains were plentiful as a result.

Top 10 Profits, 2012 N.L. Pitchers
#
Player
$
Sal
+/-
CBS
LABR
TW
PK
2011
1
R.A. Dickey
$33
4
29
3
4
5
5
$13
2
Aroldis Chapman
$28
5
23
4
5
5
2
$5
3
Kris Medlen
$25
2
23
3
4
$1
4
Kyle Lohse
$24
2
22
2
1
3
4
$16
5
Wade Miley
$19
0
18
1
$0
6
Lance Lynn
$16
2
14
1
4
8
$4
7
Santiago Casilla
$15
1
14
2
1
$8
8
A.J. Burnett
$18
4
14
5
3
4
3
$5
9
Johnny Cueto
$25
12
13
12
11
12
13
$18
10
Paul Maholm
$14
1
13
1
2
1
$7
Average
$22
3
18
3
3
4
4
$8

The lower N.L. ceiling means that you're not going to see a pitcher pull the salary/value/profit trifecta. Cueto is the only pitcher here that drew a double-digit salary. The gap from Cueto to Chapman is perhaps eye opening as well.

There was a lot of profit to be had at the bottom. It's a guessing game with most of these pitchers, but we shouldn't have completely been surprised. Dickey, Lohse, and Cueto in particular are the kind of guys we shouldn't let slip through the cracks. There's no reason to pay Dickey $13, but $7-8 probably would have been more reasonable based on what he did in 2011.

Injuries really impacted this next group.

Top 10 Losses, 2012 N.L. Pitchers
#
Player
$
Sal
+/-
CBS
LABR
TW
PK
2011
1
Tim Lincecum
$2
26
-24
28
24
25
27
$23
2
Daniel Hudson
-$4
18
-22
19
17
18
19
$18
3
Roy Halladay
$10
30
-20
33
28
29
34
$34
4
Brian Wilson
$0
14
-14
13
16
14
15
$14
5
Jair Jurrjens
-$6
8
-14
8
7
8
9
$14
6
Zack Greinke
$12
26
-14
24
26
27
28
$18
7
Cory Luebke
$4
17
-13
18
15
18
19
$15
8
Ryan Madson
12
-12
19
16
$17
9
Heath Bell
$5
17
-12
18
17
15
19
$19
10
Chris Volstad
-$9
2
-11
4
3
3
-$1
Average
$1
17
-16
18
17
16
17
$17

Hudson, Halladay, Wilson, Luebke, and Madson all missed time due to injury. Only Halladay didn't miss significant time, but his performance seemed impacted after he came back.

You probably want to be careful to craft too many definitive conclusions after one season. But if you're play in only leagues, you should treat pitching in the A.L. and the N.L. differently. The National League has plenty of quality second tier arms, and some arms at the bottom that can definitely surprise. The American League has a much more defined hierarchy. In a start over league, I would be comfortable going over $30 for a handful of the A.L.'s elite arms. In the National League, I won't be doing that this year. This isn't because I got burned in Tout Wars, but rather because the data simply don't support that strategy in 2013.